DaVita (NYSE:DVA) Stock Surges on Strong Q1 Earnings and Raised Guidance

• DaVita's Q1 Financial Performance: The healthcare provider reported adjusted earnings per share (EPS) of $2.87, beating analyst estimates by 19.1%, and revenue of $3.42 billion, surpassing expectations.
• Analyst Price Target Increase: Cowen & Co. reiterated a "Hold" rating for DaVita but significantly raised its price target to $201 from $144, reflecting confidence in the stock's potential.
• Positive Outlook and Shareholder Value: DaVita increased its 2026 adjusted EPS guidance to a range of $14.10 to $15.20, supported by a free cash flow yield over 10% and ongoing share buybacks.

DaVita (NYSE:DVA) is a major healthcare company that specializes in providing kidney care services. It operates a large network of outpatient dialysis centers across the country. The company focuses on treating patients with chronic kidney failure and end-stage renal disease, making it a key player in its specific healthcare sector.

On May 11, 2026, the analyst firm Cowen & Co. reiterated its "Hold" rating for DaVita. A "Hold" rating suggests that the analyst expects the stock to perform in line with the broader market. The firm also raised its price target for the company to $201 from a previous target of $144.

This price target increase follows DaVita's strong first-quarter financial results, which caused its stock to surge 23%. The company reported an adjusted earnings per share (EPS) of $2.87. This figure, which represents the company's profit per share, beat analyst estimates by 19.1% and was a 43.5% increase year-over-year.

The company's revenue for the quarter grew by 5.9% to $3.42 billion, also surpassing expectations. As highlighted by Zacks, this positive financial performance was driven by expanding margins and steady demand for its dialysis services. DaVita’s adjusted operating margin, which measures profitability from core business, increased to 19.1%.

Following the strong quarter, DaVita raised its adjusted EPS guidance for 2026 to a new range of $14.10 to $15.20. As highlighted by Seeking Alpha, the company's valuation is supported by a free cash flow yield of over 10%. DaVita also confirmed it is continuing to buy back its shares.